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Thursday, 18 August 2022

Domty shareholders have four weeks to sell stakes to Expedition

Subscription for Expedition Investment’s bid for a chunk of Domty kicks off today. Shareholders in cheesemaker Domty have until Wednesday, 14 September to sell their shares to Expedition Investments, as part of its mandatory tender offer (MTO) for 34% of the company, according to the timeline set by the EGX yesterday. The mandatory tender offer (MTO) will last for 20 working days, and shares will change hands within five working days of its expiry, the bourse said.

REFRESHER- The Financial Regulatory Authority (FRA) earlier this week greenlit the bid from a consortium led by Expedition to acquire a 34% stake in Domty. The consortium has offered to purchase up to 96.2 mn shares for EGP 5 a piece, giving the transaction a potential value of around EGP 481 mn.

Domty still hasn’t decided what to make of the offer: The board has not yet responded to the offer and has appointed BDO to conduct a fair value study which will be published before the end of the MTO, it said in an EGX disclosure (pdf) yesterday.

The acquisition would give the consortium ownership of 90% of Domty’s shares, as it counts the Damati family — which founded Domty and already control 56% of the EGX-listed company – among its members. The Damatis also own minority stakes in Expedition, which is an offshore special purpose vehicle domiciled in Mauritius and controlled by unknown investors in Egypt and the Gulf.

The market reaction: Domty’s shares rose a modest 0.2% during trading yesterday to close at EGP 4.82.

Advisors: EFG Hermes is quarterbacking the transaction and Matouk Bassiouny & Hennawy is acting as counsel to Expedition.

OTHER M&A NEWS- Madinet Nasr Housing and Development (MNHD) yesterday officially announced its rejection of SODIC’s takeover bid, which it said “did not reflect the real value of MNHD’s business,” in a disclosure to the EGX (pdf). The company cited its “highly attractive asset base, land bank, strategic capabilities, and growth prospects,” as some of the key indicators of its value. “Throughout this process our priority has been to deliver the best outcome for our shareholders,” said MNHD CEO Abdallah Sallam. “The shareholders’ decision today has demonstrated the long-term value that they see in MNHD.”

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